PRAL database through biometric verification: FBR directed to devise policy for validating NTNs

Federal Tax Ombudsman (FTO) has directed Federal Board of Revenue (FBR) to devise a policy to validate all National Tax Numbers (NTNs) on the Pakistan Revenue Automation Limited (PRAL) database through a system of Biometric Verification.
It is learnt that in a recently issued landmark recommendations FTO ordered FBR to conduct enquiry to determine how, and by whom the defective NTN certificate was issued in citizen/complainant's name and also devise a fool proof standing operating procedure (SOP) with the consultation of NR3C wing of Federal Investigation Agency (FIA) to stop the use of fraudulently prepared documents in PRAL.
When contacted tax lawyer Waheed Butt told this correspondent about the brief facts of present complaint recently decided by the FTO. This is a complaint against unauthorised CNIC access and unilateral issuance of NTN and subsequent amendment therein. The complainant contends that PRAL allegedly, unilaterally issued NTN in his name when he had not submitted any application and later, modified the same on the basis of dubious documents. Furthermore, the amended NTN Certificate showed him, wrongly, to have been associated with one, M/s Al-Khawan Enterprises, Faisalabad.
The complainant says that he is a resident of Model Town, Lahore, and has never been employed in Faisalabad or conducted any business there. He says that he accidentally discovered that he was borne on the FBR income tax rolls when he enquired about applying for an NTN certificate after getting a job in a Lahore. On informal enquiry from departmental officials the complainant found that he already had an NTN allotted in his name that was issued by FBR/PRAL, although he had not applied for one. After making further enquiries he came to know at the TFC Lahore counter, that a number of PRAL employees at RTO Faisalabad had been proceeded against for their involvement in corrupt practices including preparation of fabricated, tax related documentation and were eventually dismissed from service.
FTO order stated "complainant alleges that with the collusion of corrupt elements, the Deptt at Faisalabad and Lahore have been deliberately issuing NTN and STRN certificates of individuals without their knowledge after getting their CNIC. These victimised individuals were not hitherto borne on the tax rolls of the Deptt. NTN and STRN were made out without their knowledge and were not delivered to the actual persons in whose names they had been made out but retained by these corrupt PRAL/Departmental elements to be subsequently used in various schemes like contrived/bogus income tax/sales tax refunds etc.
FTO further added that the complainant stated that he informed CEO PRAL through the In-charge NTN Cell of the above development(s) and requested that the fraudsters be tracked down and action taken against them, including lodging of FIR against the main culprits, but to no avail. In this context three reminders were also sent to FBR/PRA. When the Complainant did not receive any response from FBR/PRAL, he sought the intervention of the FTO and filed a complaint.
As FBR/PRAL did not accept the complainant's contention that his signatures had been forged on the undated stamp paper application and the subsequent application for a change in NTN particulars, the Complainant sought the opinion of a professional handwriting expert after informing this office in the matter. He submitted samples of his handwriting/authorised signatures along with the so called, original stamp paper application for issuance of NTN and the application for change in NTN particulars. The expert compared the Complainant's authorised signatures with the signatures on the contested documents and concluded that the signatures on these documents were not consistent with the Complainant's signature. The handwriting expert's report was sent to FBR/PRAL. A reply was filed in response in which FBR/PRAL contended that as the complainant alleged that his signatures on the cited applications had been forged, the FTO did not have jurisdiction to investigate the complaint as forgery was a criminal offence cognizable only under the PPC by a court of competent jurisdiction: FTO order added
FTO further observed "Dept'l objection to FTO's jurisdiction is misconceived. This is much more than a simple case of forgery. Certain FBR/PRAL functionaries have deliberately, brazenly, violated the strict protocols instituted for issuance of NTN, for recording a change in NTN particulars and for issuance of STRN and their motivation is wholly suspect. Their actions are contrary to the law and attract the provisions of the FTO Ordinance, 2000. The violation of prescribed protocols being contrary to law is tantamount to maladministration and hence placed well within the jurisdiction of the FTO. PRAL has suffered adverse comment from the FTO earlier as well. The fact remains that despite huge investment in PRAL infrastructure, it remains highly deficient in implementing protocols ostensibly set up to efficiently process and dispose of taxpayers queries relating to various issues and problems that they routinely face in their dealings with the Deptt. The present complainant too has obviously suffered at PRAL's hands but the organisation obstinately refuses to acknowledge any shortcoming or wrongdoing on its part. As a result, it refuses to take corrective action.
There is need that the Department accepts these happenings and takes concrete steps to ensure that others are spared such harassment and the fraud that is being perpetrated in the Deptt due to documents contrived fraudulently comes to an end. FBR is directed to devise a policy to validate all NTNs on the PRAL data base through a system of biometric verification and a copy of findings/recommendations, be forwarded to the FIA for initiating criminal investigation into the forgery of complainant's signatures, FTO order added.